AIC Letter in the Wall Street Journal: Who’s Worried About a Private Credit Winter?
Dunham: “Private credit is defined by its flexibility. Unlike traditional lenders, these creditors can make quick adjustments to deals to ensure stability and manage risk.”
AIC’s President and CEO, Will Dunham, recently authored a letter to the editor in the Wall Street Journal highlighting the resilience of private credit in adapting quickly to manage volatility and risk through active management, strong underwriting standards, and direct relationships with borrowers. In response to a recent op-ed in the Wall Street Journal, Dunham argues that private credit continues to deliver strong returns despite market volatility, including during the COVID-19 pandemic and the 2022 interest-rate shock.
Private credit has become a valuable alternative to traditional lending from banks, especially for small- to medium-sized businesses that often do not qualify for loans or need capital. A recent report from EY highlighted private credit’s critical role in growing the U.S. economy. U.S. companies receiving private credit investments directly employed more than 811,000 workers in 2024, while the median company backed by private credit employs just 182 people.
Read the full Wall Street Journal LTE below:
Wall Street Journal: Who’s Worried About a Private Credit Winter?
November 7, 2025
Dan Wertman has inadvertently highlighted the strength and resilience of private credit (“A Private-Credit Winter Is Coming,” op-ed, Oct. 28). He writes that a crisis is waiting to happen, predicting that private credit could “unravel faster than anyone can track.” But then he points to the steps creditors are taking to prevent such an event, weather a potential market downturn and continue private credit’s return performance.
Private credit is defined by its flexibility. Unlike traditional lenders, these creditors can make quick adjustments to deals to ensure stability and manage risk. Such active management, accompanied by strong underwriting standards and direct relationships with borrowers, is focused on finding mutually beneficial agreements for the creditor and borrower. The flexibility helps explain why private credit has a track record of avoiding high default rates and recovering faster than other credit markets during economic downturns, most recently delivering strong returns during Covid and the 2022 interest-rate shock.
Mr. Wertman senses “a system steeling itself for impact.” More accurately, the actions creditors are taking today will keep this large and growing market resilient and prosperous if winter comes tomorrow.
Will Dunham
American Investment Council
Washington
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